Letter to the U.S. Department of Agriculture
Re: EQIP Rule

May 21, 2003           

Chief Bruce I. Knight
Natural Resources Conservation Service
U.S. Department of Agriculture
1400 Independence Avenue, S.W.
Room 5105A
Washington , D.C. 20250-2890  

Dear Chief Knight:           

            On behalf of our organizations’ millions of members and supporters, we write out of concern that the Final Environmental Quality Incentives Program (EQIP) Rule is released in violation of the law.   

EQIP has the potential to aid in the conservation of important natural resources.  If the program is not administered and implemented thoughtfully, however, it also has the potential to have significant negative impacts on the environment.  This is particularly true of EQIP funding directed towards manure management on Concentrated Animal Feeding Operations (CAFOs), but also applies to the direction of funds to other practices, such as the conversion of wetlands to deep irrigation ponds.  In light of the large investment of taxpayer dollars in EQIP under the new Farm Bill, the Natural Resources Conservation Service (NRCS) should correct the procedural and substantive problems with its Final EQIP Rule by conducting an adequate Environmental Impact Statement (EIS) and by withholding funding from areas identified in this letter until an EIS is completed.  

NRCS concludes in the Supplementary Information released with the final rule that allowing EQIP funding to be used by CAFOs for structural practices will increase the conservation benefits of the program, even if these funds go to new and expanding CAFOs or CAFOs located in floodplains.  We cannot agree that providing funding for manure management at CAFOs will, by itself, ensure conservation benefits.  To the contrary, the substantial environmental and public health risks associated with CAFOs are well documented and increasingly wide spread.  It is essential for the national NRCS office to ensure that taxpayer dollars are not used to perpetuate the status quo and that funds meant to protect and enhance the environment are not diverted into technologies and practices that actually degrade natural resources and pose significant public health risks.  Many CAFO waste handling systems, for example large-scale liquid manure lagoons and effluent sprayfields, including those designed or approved by NRCS, have inherent design flaws and are operated in a manner that guarantees significant releases of air pollutants, catastrophic spills of manure, urine and other wastes, significant odor problems, health threats from antibiotic resistant pathogens, and long-term, chronic environmental degradation.  

Under the National Environmental Policy Act (NEPA), a Federal agency  proposing a major action that may significantly affect the quality of the human environment must conduct the appropriate level of environmental review.  In February, 2003, the Natural Resources Conservation Service (NRCS) issued a draft Environmental Assessment (EA) and draft Finding of No Significant Impact (FONSI) for its proposed Environmental Quality Incentives Program (EQIP) rule.  Comments submitted to NRCS within the 30 day comment period put NRCS on notice that its draft EA and FONSI are inadequate under the law.  NRCS’s final EA and final FONSI failed to address these comments and are inadequate under the law for the same reasons the draft EA and draft FONSI were inadequate under the law.   

                        In both the draft and final EA and FONSI for EQIP, NRCS considered six alternatives that “describe different ways to allocate EQIP funds to the states.”  The minor issue of allocation of EQIP funds to the states, including alternative methods of allocation, was the only issue considered in both the draft and the final EA and FONSI.  The Farm Security and Rural Investment Act of 2002 (the 2002 Act) (Public Law 107-171), however, leaves open several much more substantial environmental questions with respect to EQIP to be addressed administratively.  The administrative resolutions to these questions made by NRCS have the potential to significantly affect the quality of the human environment.  These issues, however, are not analyzed and no alternatives related to them are considered in either the NRCS’s draft or final EA and FONSI.  Under the National Environmental Policy Act (NEPA), an Environmental Assessment must consider alternatives if there are unresolved conflicts over natural resources.  An EA must describe the potential negative environmental effects of the proposed action as well as of alternatives, including the direct, indirect, and cumulative effects.  

In the EQIP Proposed Rule’s Economic Analysis – Executive Summary, Tier Two, NRCS acknowledged that in drafting the Rule, it has wide latitude in how it chooses to distribute EQIP funding to livestock operators and whether it chooses to distribute any funding to CAFOs.  In fact, the summary states, “With the promulgation of [the U.S. Environmental Protection Agency’s CAFO] rule, EQIP can no longer claim environmental benefits from treatment of large producers, since they must comply with CAFO regulations.  EQIP resources would therefore be most efficiently used in treating the next largest non-regulated class of producers.”  NRCS further acknowledged, in its EQIP Proposed Rule with Request for Comments, Optimizing Environmental Benefits section, that the implementation of EQIP has potential “adverse ancillary impacts” and that NRCS, in developing the Rule, has the ability to limit those adverse ancillary impacts.  

            The purposes of EQIP under the 2002 Act are to promote agricultural production and environmental quality as compatible goals, and to optimize environmental benefits.  The way in which NRCS exercises its administrative discretion in the implementation of the changes to EQIP in the 2002 Act has the potential to significantly affect the quality of the human environment.  These changes include: allowing, for the first time in the program’s history, livestock operations with 1,000 animal units (AU) or above to be eligible for cost-share payments for structural practices related to manure management; authorizing far greater levels of funding for EQIP than provided under previous law; lifting the dollar maximum per individual or entity from $50,000 to $450,000; decreasing the minimum term of contract from five years to one year beyond the date of completion of the project; and changing the amount of EQIP funds that must be targeted to natural resources concerns related to livestock production from 50 percent to 60 percent.  

            These legislative changes have created numerous open questions, to be resolved by NRCS in its EQIP rule.  Alternatives related to these questions should be included in an adequate environmental analysis under NEPA.  These questions include, among others: (1) whether the use of EQIP funds for structural practices related to manure management for operations located in floodplains has the potential to significantly affect the quality of the human environment; (2) whether the use of EQIP funds for structural practices related to manure management for new Concentrated Animal Feeding Operations (CAFOs) has the potential to significantly affect the quality of the human environment; (3) whether the use of EQIP funds for structural practices related to manure management for Animal Feeding Operations (AFOs) expanding to CAFOs has the potential to significantly affect the quality of the human environment; (4) whether the use of EQIP funds for structural practices related to manure management for expanding existing CAFOs has the potential to significantly affect the quality of the human environment; (5) whether entering into contracts of up to $450,000 for industrial infrastructure has the potential to significantly affect the quality of the human environment; and (6) whether the use of EQIP funds for the conversion of wetlands to deep irrigation ponds has the potential to significantly affect the quality of the human environment.  Pursuant to NEPA, alternatives analysis for each of these issues should address potential direct, indirect, and cumulative effects on air and water resources, soil quality, wildlife, food safety, as well as social and economic impacts.  Our organizations believe that the issues raised in the questions above could have significant negative impacts on the human environment including, but not limited to, negative impacts on water quality, air quality, and federally listed threatened and endangered species.  

Because NRCS failed to provide the proper level of analysis, an Environmental Impact Statement, for all of the issues discussed in this letter, its Final EQIP Rule runs counter to the law both procedurally and substantively.  The Natural Resources Conservation Service (NRCS) should correct the procedural and substantive deficiencies with its Final EQIP Rule by conducting an adequate Environmental Impact Statement (EIS) and by withholding funding from areas identified in this letter until an EIS is completed, namely the use of EQIP funds for manure management associated with CAFOs and the conversion of wetlands to deep irrigation ponds.   

Sincerely,  

Defenders of Wildlife
Susan Prolman, Government Relations Counsel  

Friends of the Earth
Sara Zdeb, Legislative Director  

The Humane Society of the United States
Wayne Pacelle, Senior Vice President, Communications and Government Affairs  

Global Resource Action Center for the Environment (GRACE)
Christina Salvi, Factory Farm Program Associate  

National Audubon Society
Perry Plumart, Legislative Director  

National Campaign for Sustainable Agriculture
Kathy Lawrence, Executive Director  

National Catholic Rural Life Conference
Br. David Andrews, CSC, Executive Director
 

Natural Resources Defense Council
Melanie Shepherdson, Project Attorney, Clean Water Project  

Sierra Club
Navis Bermudez, Associate Washington Representative  

Sustainable Agriculture Coalition
Ferd Hoefner, Washington Representative

Waterkeeper Alliance
Jeffrey Odefey, Staff Attorney
 

cc: Charles Whitmore
Director of Conservation Operations
Natural Resources Conservation Service
US Department of Agriculture
Washington , D.C. 20250